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FULL FLEX (FSA)125 PLAN
ADMINISTRATION:
Your 1 stop source for Flexible
Spending Benefits Administration:
Our goal is to help
your company design, implement and administer a successful
Full Flex Flexible Spending Arrangement (FSA) 125 Benefit
plan.
- With you, we will
design and implement your Full Flex (FSA) 125 benefit
plan
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- Provide employee
information including a worksheet for estimating
medical and dependent care expenses.
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- Provide on site
employee 1 on 1 private enrollment
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- Toll Free Phone Support with Live
People to talk to
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- Check reimbursement
disbursement on a weekly basis
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- Direct deposit (where
available)
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- Complete Explanation
of Benefits (EOB) with each reimbursement
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- Comprehensive detailed
management reports
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- Signature ready IRS
Form 5500 as required at no charge
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- Regular Compliance
Testing at no charge
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- WHAT IS
A SECTION 125 PLAN?
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- Section 125 of the Internal Revenue Service (IRS) code
which allows Employers to sponsor a plan for their Employees that creates PRE-TAX savings through the deduction of:
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- Medical
Insurance Premiums
- Un-Reimbursed
out-of-pocket Medical Expenses
- Dependent/Child Care
Expenses
- Personally Paid
Health Insurance Premiums
- Implementing A FULL SECTION 125 PLAN saves both the Employer and the Employee a lot more money than simply implementing a
Premium Only Plan (POP). In a Full Flex Section 125
Cafeteria Plan:
- Employees Can...
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- Increase
their take home pay
- Choose additional voluntary benefits with
tax savings
- Decrease Medical
out-of-pocket Expenses
- Deduct Dependent
and/or Child Care Expenses
- Employers Can...
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- Lower
reportable payroll
- Reduce Workers Compensation Premium
- Reduce
payroll taxes
- Offer
additional voluntary benefits to employee without increasing
corporate cost
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HERE'S HOW THE FULL FLEX
(FSA)125 PLAN COULD
BENEFIT EMPLOYEES:
CLICK HERE
TO CALCULATE HOW MUCH YOU COULD SAVE
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Section 125 Sample Illustration Chart: |
Without
The Plan |
With
The Plan |
Monthly Gross Pay Illustration
Qualified Expenses: |
$3000 |
$3000 |
| 1. Insurance Premiums |
$0 |
$100 |
| 2. Un-Reimbursed Medical |
$0 |
$100 |
| 3. Dependent Care |
$0 |
$400 |
| 4. 125 Admin. Fee |
$0 |
$3 |
| Adjusted Gross Income: |
$3000 |
$2397 |
| Federal, State, FICA: |
$676 |
$506 |
| Expenses: |
$600 |
$0 |
| Net Spendable Monthly Income: |
$1724 |
$1891 |
| ANNUAL SAVINGS: |
None |
$2004 |
HERE'S HOW
THE FULL FLEX
(FSA)125 PLAN COULD BENEFIT EMPLOYERS:
Section 125 Annual Savings Analysis:
SAMPLE COMPANY - 40 EMPLOYEES |
1) Employee Contribution
(Incl. $3/mo. admin fee per EE.) |
$43,440 |
| 2) Unreimbursed Medical |
$12,500 |
| 3) Dependent Care |
$20,000 |
| Total Payroll Reduction |
$75,940 |
| *Employer Savings: $8,353 |
Employee Savings: $20,504 |
| Average Combined Savings Per Employee Per Year: $513 |
| Total Annual Cost to Employer: $1,200 |
| Net Employer Savings: $7,153 |
| *Employer Savings is derived from W/C 2%; FUTA 1 %; FICA 7.65% |
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11220.96
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+32.73
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2255.88
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-3.16
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1242.31
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